Puerto Rico News Digest For April 7, 2016

DEBT MORATORIUM SIGNED INTO LAW

From The San Juan Daily Star:

"Gov. Alejandro García Padilla on Wednesday rebuked those who have ex-
pressed opposition to the Emergency Moratorium and Financial Rehabilita-
tion of Puerto Rico Act, which will enable him to declare a comprehensive 
moratorium on the commonwealth’s debt payments while providing a new
receivership process to deal with the financially battered Government De-
velopment Bank (GDB). Having signed the legislation into law Wednesday 
after it was approved by the island House of Representatives, the governor 
will be able to declare a moratorium on the payments of debts including ge-
neral obligations (GOs) and Puerto Rico Sales Tax Financing Corp. (COFI-
NA by its Spanish acronym) bonds..."

US APPEALS COURT UPHOLDS PR GAY MARRIAGE

From Caribbean Business:

"A U.S. appeals court has ruled that Puerto Rico can’t prohibit gay marriage.
The court overruled a federal judge who said a U.S. Supreme Court decision 
allowing gay couples to marry anywhere in the United States does not apply 
on the island because it is a U.S. territory, and not a state. The appeals 
court said Thursday that the district court misconstrued the law and directly
contradicted its mandate..."

SEXUAL ASSAULTS FALL MORE THAN 50%

From Fox News Latino:


"The number of cases of sexual aggression in Puerto Rico has declined
by more than half over the past five years, in large part thanks to the gro-
wing awareness among women of their rights. "We're observing a greater
resistance on the part of women," clinical psychologist Maria Ward, the
director of the Rape Victims Aid Center, told EFE coinciding with the
celebration of Sexual Assault Awareness Month on the island. According
to Ward, 2,467 women in Puerto Rico suffered some kind of sexual assault
in 2010, a figure that in 2015 had been reduced by 57 percent to 1,057..."

URBAN OUTFITTERS TO OPEN AT MALL OF SJ

From News Is My Business:

"Lifestyle and fashion apparel retailer Urban Outfitters Inc. will be ope-
ning its first store in Puerto Rico in September at The Mall of San Juan,
this media outlet has learned. While mall officials would not comment on
the chain’s fall arrival, Liz Witty-Freet, field talent manager for Urban
Outfitters, confirmed the date.Urban Outfitters joins Anthropologie and
Free People — which also belong to Urban Outfitters Inc. — and are al-
ready present at The Mall of San Juan..."

Puerto Rico News Digest For September 18, 2015

CARRAIZO RESERVOIR KEEPS RISING

The Carraízo water reservoir, which serves a large part of the  San Juan
metropolitan area, registered a level this morning of  38.52 meters, only
48 centimeters away from reaching "Observation Level". That level is
the goal that Puerto Rico's water utility, AAA, had set for ending  the
water rationing plan that thousands of users in the metro area have been
enduring for several months. Water rationing is currently on a 24 hour
alternating schedule. The other major reservoir in the  area, La Plata,
saw gains of 2 inches overnight, but it's levels are considerably lower
than Carraízo's and rationing for La Plata users is not expected to end
any time soon.

GOVERNMENT MAY HAVE TO SHUT DOWN

From The San Juan Daily Star:

The Puerto Rico government will have to decide in favor of a partial
government shutdown or go into default on its general obligations due
in January if the projections of a report by financial advisers materiali-
ze. “If Conway MacKenzie’s forecast materializes, then there is a sig-
nificant risk of at least a partial government shutdown before the end
of 2015,” Center for the New Economy (CNE) Public Policy Director
Sergio Marxuach said. The report of the advisory firm Conway Mac
Kenzie states that the government may have a bank cash deficit of
$29.8 million in November and a peak cash defi cit of $511.6 million
in June. However, it states the commonwealth Treasury single account
will have a deficit of $612 million or $1.788 billion, the last number in
the event of all risks occurring.

GOVERNOR MEETS WITH US TREASURY SECRETARY

From Caribbean Business:

Gov. Alejandro García Padilla held several meetings this week in Wa-
shington, D.C., with Obama administration officials and members of
Congress, with the discussions focusing on fiscal and economic deve-
lopment issues, including access to Chapter 9 bankruptcy protection,
Medicare funding, infrastructure projects and corporate tax treatment.
García Padilla met with Treasury Secretary Jacob J. Lew and National
Economic Council Director Jeffrey Zients Thursday. The group discu-
ssed the recently released Fiscal & Economic Growth Plan. According
to a statement released by Treasury, Lew and Zients "commended the
governor for producing a serious and comprehensive accounting of the
Commonwealth’s overall fiscal position and proposal for how the Co-
mmonwealth can achieve financial sustainability over the next five
years.”

MALL OF SAN JUAN OPENS 18 NEW STORES

From News Is My Business:

The Mall of San Juan announced Thursday that 18 new stores, including
Puerto Rico’s only Williams-Sonoma and Pottery Barn, along with luxury
brands Bulgari and Gustavo Arango and the 100th Oil & Vinegar store
will join its shopping and dining lineup this month — the majority of
which are exclusive to the market. “Our lineup of premium retailers and
restaurants will become even more distinctive this month,” said Marnie
Marquina, marketing and sponsorship director, The Mall of San Juan.
“From talented Puerto Rican designers to stores exclusive to the island,
we’re excited to offer our customers a truly unique shopping and dining
experience.”

64,000 PEOPLE LEFT PR LAST YEAR

From ABC News:

A record 64,000 Puerto Ricans left the island last year for the U.S. main-
land, the highest number in the past decade, officials said Thursday. The
exodus represents a 31 percent increase from 2013, when some 49,000
people left, according to the island's Institute of Statistics. The surge in
departures comes as the U.S. territory of 3.5 million people struggles with
a nearly decade-long economic slump. The island has a 12 percent unem-
ployment rate, higher than any U.S. state, and has a labor participation ra-
te of less than 40 percent, compared to 62 percent on the U.S. mainland.

Puerto Rico News Digest For August 10, 2015

FIRST DAY OF SCHOOL UNDER RATIONING

Classes started in public schools all over Puerto Rico this morning in
the wake of an announcement by Education Secretary Rafael Román
that schools in areas affected by water rationing will have a shortened
schoolday. Students in 476 schools affected by rationing will only att-
end class from Monday to Thursday from 8:00 AM to 1:15 PM. Some
of the schools involved actually have running water, but it was deci-
ded to include them in the new schedule to avoid problems with coor-
dinating transportation among schools that are in the same municipa-
lity. Schools in the following municipalities will operate under the sh-
ortened schedule: Bayamón, Naranjito, Corozal, Toa Baja, Toa Alta,
Cataño, Caguas, Salinas, Coamo, Canóvanas, Juncos, Loíza, Río Gra-
nde, San Juan, Carolina, Trujillo Alto and Guaynabo. Also included
are Pablo Suárez Ortiz School in Luquillo, Emilio Casas in Santa Isa-
bel, Alfonso López O’Neill in Aguas Buenas and Jaguas in Gurabo.
Román added that only 25 percent of schools will offer breakfast to
students.

AGP COULD FACE REELECTION CHALLENGE

From The San Juan Daily Star:

Although Popular Democratic Party Secretary General Jorge Colberg
recently dismissed the possibility that Gov. Alejandro Garcia Padilla
could be challenged for reelection in a primary, Isabela Mayor Carlos
Delgado Altieri said otherwise on Thursday. Delgado Altieri said the-
re could be primaries in the PDP for the gubernatorial nomination be-
cause of the lack of communication between Garcia Padilla and the
rest of the party’s organs. The STAR learned that the mayors of San
Juan, Carolina and Caguas are trying to topple Garcia Padilla and will
be searching for an alternate candidate.

PR GETS $10 MILLION TO FIGHT DRUGS

From Caribbean Business:

Puerto Rico's representative in Congress says the U.S. territory is slated
to receive $10 million in federal funds to help fight drug trafficking, boo-
st security and respond to natural disasters.Pedro Pierluisi said Saturday
the Federal Emergency Management Agency will allocate the money un-
der four separate grants.

RETAIL ACTIVITY PICKING UP

From News Is My Business:

Retail activity is picking up at several local malls, with new store open-
ings in San Juan, Caguas, Ponce and Barceloneta next month, this media
outlet confirmed. One of the retailers expanding will be Bath & Body
Works, which will open two new stores in Plaza del Caribe in  Ponce
and Las Catalinas Mall in Caguas, on Sept. 22 and Oct. 20, respectively,
store officials confirmed. Meanwhile, The Mall of San Juan will receive
seven new tenants in coming weeks, several of which are new to the mar-
ket.

Puerto Rico News Digest For June 10, 2015

2-DAY WATER RATIONING STARTS TODAY

From The San Juan Daily Star:

Starting Wednesday, some 160,000 citizens who receive water from Lake
Carraízo will enter into the second phase of the water rationing plan, which
is two consecutive days without potable water followed by one day with it,
Puerto Rico Aqueduct and Sewer Authority (PRASA) Director Alberto Lá-
zaro announced. “This decision to extend to a second phase arises from the
dramatic reductions [in water levels] at Carraízo reservoir, due to the severe
drought many municipalities are facing, especially those whose rivers feed
the reservoir,” Lázaro said, adding that the level of the reservoir is at 36.34
meters, which means that during the weekend the water level went down by
more than .17 centimeters.

MAN SHOT DURING FACEBOOK MEETING

A Carolina man was shot last night at the Jardines de Montellano public hou-
sing project in Cayey as he was meeting in person a woman he had found on
Facebook. Shortly after arriving at the projects number 69 building, two males
approached the man and asked him what he was doing there, immediately after
which they opened fire. The victim was transported to Centro Médico in Río
Piedras with gun shot wounds to the chest. He is in stable condition, as repor-
ted today by El Nuevo Día.

NEW STORES DEBUT AT MALL OF SAN JUAN

From Caribbean Business:

The retail establishments offer a variety of products and services. BCBG
Max Azria offers women’s ready-to-wear and accessory collections; Evo-
cent has handcrafted jewelry and accessories; Lush Fresh Handmade Cos-
metics, a first on the island, sells hair and beauty products; Swiss-watch
manufacturer OMEGA ’s first local store; Perfume Plus; the first Brow Art
23 store on the market; watches and jewelry from Invicta’s only store in
Puerto Rico; and apparel and accessory store Zara’s second local store.

COTTO WANTS CANELO ALVAREZ FOR NEXT FIGHT

From International Business Times:

After Miguel Cotto of Puerto Rico pulverized Daniel Geale of Australia in
just four rounds Saturday, Cotto wasted no time in calling out Mexico's Ca-
nelo Alvarez for his next fight. "Let's do it," Cotto told HBO commentator
Max Kellerman after the match with Geale. "Before that, I want to spend
some time with my family and enjoy them again, but then it's back to L.A.
and training for Canelo [Alvarez]." Cotto and Alvarez did not want to “do it”
earlier this year when negotiations for the fight broke down at the last minute.
Instead, the Puerto Rican faced an overmatched Australian -- just another
tune-up fight before the potential big money fight against Alvarez.

Puerto Rico News Digest For April 20, 2015

LEGISLATORS LOOK TO LOWER IVA RATE

From The San Juan Daily Star:

Lawmakers at the island House of Representatives on Thursday continued
fine-tuning the proposed Tax Reform with the goal of incorporating mea-
sures that would help reduce the value-added tax to a rate lower than
the original 16 percent. The STAR learned that lawmakers were evaluating
how much money a proposed tax on soft drinks would produce as well as
the proposed 6 percent tax on megastores’ transfer pricing. “We are eva-
luating to see if the [value-added] tax can be reduced as much as possi-
ble,” one lawmaker said. The House is evaluating reducing the proposed
value-added tax (IVA by its Spanish acronym) to between 12 percent and
14 percent and creating a reduced sales and use tax for businessto-busi-
ness transactions.

PR BIRTH CERTIFICATES SOLD TO IMMIGRANTS

From The Bradenton Herald:

Over the last 12 months, half a dozen cases have popped up in Miami federal
court involving defendants who have illegally procured Puerto Rican birth
certificates to obtain passports or driver licenses. A State Department
spokeswoman said she was going to look into the matter, but ultimately did
not respond to an email query from el Nuevo Herald. A spokesman for the
Commonwealth of Puerto Rico Federal Affairs Administration also did not
respond to an email query from el Nuevo Herald. When the Puerto Rican birth
certificate law was enacted in December 2013, officials in San Juan said it
was a tool to combat widespread identity theft on the island.

POWERBALL JACKPOT SOLD IN PUERTO RICO

From Caribbean Business:

Saturday’s winning Powerball numbers were on a ticket sold in Puerto Rico.
It was bought in Sabana Grande’s Rodríguez Supermarket, and the holder
will be entitled to the $50 million jackpot, meaning he or she can collect
the winnings in a lump sum of $26.8 million after taxes or 30 annual pay-
ments starting Monday. The Powerball winning numbers were 13-22-23-29 -31;
the red Power number, 17; and the Power Play number, 3.

TAUBMAN INCREASES MALL OF SJ OWNERSHIP

From News Is My Business:

Taubman Centers Inc. announced the acquisition of an additional 15 percent
interest in The Mall of San Juan, pushing its ownership in the recently
opened center to 95 percent. The additional interest was acquired at cost,
while New Century Development Inc. will retain the remaining 5 percent
interest in the project, the company said.

PR NEW LUNG CANCER LOWER THAN US

From Outbreak News Today:

Puerto Rico has the lowest incidence rate of new lung cancer compared 

with all other races and ethnic groups in the United States, according 

to a study published last week in the Centers for Disease Control and 

Prevention’s Morbidity and Mortality Weekly Report.  The report also 

shows that Puerto Rico has a lower incidence rate of female breast 

cancer compared with U.S. non-Hispanic white and black women.

Puerto Rico News Digest For April 8, 2015

PR GOVERNMENT SHUTDOWN POSSIBLE 

From The San Juan Daily Star:

The possibility of a government closing like the one that took place
in 2006 in Puerto Rico is real because of falling revenues, Treasury
Secretary Juan Zaragoza said Monday. “The turning point is April.
That is when we will know,” he said. “So far, we are positive. We co-
llect through tax withholdings over the course of the year, but the
important part of the year is April.” Zaragoza said in a radio inter-
view that the budget is expected to end in deficit. The revenues ob-
tained by April 15 through income taxes will be crucial in determi-
ning  if the government will have to close or not before the end of
the current fiscal year in June.

AUTOEXPRESO FINE AMNESTY STARTS TOMORROW

The Transportation and Roads Authority will begin an amnesty program

on April 9th for drivers who have incurred fines for non-payment of tolls

on AutoExpreso lanes. Fines will be reduced to $15 for each violation,

plus the cost of the toll that was originally unpaid. The program will be 

available until October 5 of this year. Payments can be made at CESCO

or AutoExpreso offices across the island. For questions, call 787-494-0935 

or email autoexpresoact@dtop.gov.pr.

MALL OF SAN JUAN LOOKS FOR NEW GM

From Caribbean Business:

Manuel Vázquez, the general manager of The Mall of San Juan, a nearly
half-billion-dollar high-end shopping center recently opened in the
Puerto Rico capital, has reportedly left the company. Vázquez, a retail
industry veteran, was responsible for all shopping center operations
as well as retailer and community relations, marketing, sponsorship
and grand opening preparations for Taubman Centers’ only mall in the
Caribbean.

FAKE NAVY SEAL CAUGHT IN PUERTO RICO

From WFAA:

Carlos Luna-Gonzalez wore a Navy lieutenant junior grade uniform with
a SEAL trident, a Purple Heart, and jump wings. He was arrested on
charges of impersonating a ranking officer and theft in a sting operation
in November 2014 after he accepted a "firearm of appreciation" for his
allegedly false service. But police say Gonzalez jumped bond and took off
for Puerto Rico. "That's a touchy subject with a lot of us vets," said
Parker County Sheriff Larry Fowler on Tuesday. Sheriff Fowler asked
Puerto Rico police for help. Monday night, he got word they had his man.

PR RESIDENTS GET DISABILITY FOR NO ENGLISH

From ABC News:

A federal audit has found that some Puerto Ricans living in the U.S.
territory have received disability benefits in part because they could
not speak English. The Office of the Inspector General for the Social
Security Administration said in a report issued this month that there
were 218 cases from 2011 to 2013 in which benefits were granted under
those circumstances.

AEROSTAR PUMPS $800M INTO LMM AIRPORT

From News Is My Business:

In its first two years as the operator of the Luis Muñoz Marín Inter-
national Airport, Aerostar Airport Holdings has pumped $800 million
into the facility that is already showing an improved and more modern
look and feel, and saw a 3 percent increase in passenger traffic last
year. During a meeting with members of the media, Aerostar CEO Agustín
Arellano offered a rundown of the projects completed since the company
took over the management of the LMM in February 2013.

Puerto Rico News Digest For February 25, 2015

PR RESIDENTS SUE PREPA FOR FRAUD

From Reuters:

Local residents and businesses sued Puerto Rico's Electric Power
Authority (PREPA) in federal court on Tuesday, alleging fraud
in the fuel oil procurement process that plaintiffs said resulted
in island residents being overcharged by more than $1 billion.

The lawsuit in U.S. District Court in Puerto Rico accuses PREPA,
one of the largest U.S. public utilities, of taking kickbacks to
accept millions of barrels of fuel oil from suppliers that did
not meet contract requirements or federal environmental standards.

"As a result of this scheme, PREPA overpaid its fuel suppliers
for fuel oil and passed through the entire cost of the non-
compliant fuel oil to plaintiffs," the lawsuit alleged. The
lawsuit covers oil purchases since 2002.

FAJARDO AIRPORT TO CLOSE PERMANENTLY

From Caribbean Business:

On January 21, 2015, PRPA, sponsor of Diego Jimenez Torres Airport,
informed the Federal Aviation administration (FAA) that the airport
will close permanently on April 30, 2015. Diego Jimenez Torres is
a small 94-acre non-towered, general aviation airport.

DORAL OFFICIAL ARRESTED FOR FRAUD

From The San Juan Daily Star:

Federal authorities on Monday morning arrested a Doral Bank
official and an executive whose company contracts with the
bank on charges of financial institution fraud, misapplication
of bank funds, wire fraud and money laundering. U.S. Attorney
for the District of Puerto Rico Rosa Emilia Rodríguez announced
Monday that last week a federal grand jury returned a 30-count
indictment charging Annelise Figueroa and Rolando Rivera Solis.
The FBI is in charge of the criminal investigation,Rodríguez
said. According to the indictment, Figueroa was an employee of
Doral Bank and vice president of the Property and Facilities
Department.

FIVE MORE STORES FOR MALL OF SAN JUAN

From News Is My Business:

Camicissima Milano, Geox Shoes, Invicta Watches, Diventi Bella,
and T-Mobile are the five most recent retailers adding their
names to The Mall of San Juan’s tenant mix, this media outlet
learned Tuesday. That drives the number of confirmed retailers
to just short of three dozen.

Puerto Rico News Digest For February 17, 2015

PIERLUISI SEEKS SUPPORT FOR STATEHOOD BILL

From The San Juan Daily Star:

Resident Commissioner Pedro Pierluisi announced Thursday that 10
members of Congress have joined him as co-authors of the bipartisan
legislation that will pave the way for Puerto Rico to become a state.
The sponsorship comes at a time when several Republicans are calling
for Puerto Rico to be placed under a federal board to manage its
financial aff airs. HR 727 calls for a status vote that will be held
a year after the approval of the bill or no later than the end of
2017. The legislationwill ask voters if they want to become a state.
According to the bill, if a majority of Puerto Ricans vote for
statehood, there will be a statehood declaration on Jan. 1, 2021.

ECONOMIST: 2015 WILL BE DECISIVE FOR PR

From News Is My Business:

The effects of the current administration’s value-added tax proposal
as part of a sweeping tax overhaul and the “liquidity time bomb” of
the Government Development Bank will make 2015 a “decisive year”
for making harsh decisions, analyst firm H. Calero Consulting pre-
dicted in the latest edition of its publication “Compass.”

In the analysis released last week, the firm offered its views of
2014, describing it as “another turbulent year for the Puerto Rican
economy.” “Businesses and households sadly miss the stable growing
years of the late 80s and 90s. This continued state of crisis
impacts house holders’ and business owners’ peace of mind. Many
households have lost confidence in Puerto Rico’s recovery and con-
sequently, they are migrating to the U.S. [mainland],” the firm
said, adding that other issues causing uncertainty, such as the
tax reform and other laws are fueling the outward shift.

FUNERAL HELD FOR MAN IN GREEN LANTERN COSTUME

From Fox News Latino:

A wake was held for a 50-year-old man who died last week in Puerto
Rico, with his family dressing him as the Green Lantern comic book
character, local media reported.

The body of Renato García, who succumbed last Monday to unspecified
health problems, was displayed on Sunday at his home in San Juan's
Rio Piedras neighborhood. According to his relatives, García made
the costume several weeks ago and since then he had been in the habit
of wearing it all the time and going out in public dressed that way,
and so the family decided to dress him like that for the funeral,
which is scheduled for Monday.

MALL OF SAN JUAN ADDS FIVE MORE STORES

From Caribbean Business:

Michigan-based Taubman Centers Inc., which owns the Mall of San
Juan luxury shopping center, revealed Monday several new entrants
to the Puerto Rico retail scene that are set to open as part of
the mall’s inauguration March 26. The stores in question are Brio
Tuscan Grille, an Italian cuisine restaurant based in Columbus,
Ohio; Burger & Beer Joint, a gourmet burger chain founded in Miami;
Hollister, a California teen-clothing store owned by Abercrombie
& Fitch Co.; Kona Grill, a Japanese-themed restaurant franchise
based in Scottsdale, Arizona; Tommy Bahama, a Seattle-based
causal clothing store, and Vans, a footwear and apparel
company.